Coinbase Executives Plan to Sell Over $900 Million in Shares

Executives and directors at Coinbase Global are set to implement trading plans that involve selling over $900 million in company shares.

A group of three executives and two board members are preparing to offload as many as five million shares of the cryptocurrency exchange.

At the current closing price of $182.88 per share, these sales are projected to yield approximately $909 million. CEO and co-founder Brian Armstrong has initiated a strategy that permits the sale of up to 3.75 million Class A shares, which can be converted from Class B shares that hold greater voting power but are not publicly available. This trading plan, following Rule 10b5-1, allows company insiders to make trades based on established terms, thereby steering clear of any potential insider trading issues. Armstrong’s trading plan is set to begin on November 18, 2024, and will conclude no later than November 14, 2025.

Additionally, Alessia Haas, the CFO of Coinbase, has put a trading plan in place that will kick off in January 2025, enabling her to sell up to 153,896 shares she holds, along with those linked to her stock options. Co-founder Frederick Ernest Ersam III intends to sell up to 866,122 Class A shares by converting Class B shares, with his sales commencing in late 2024 and continuing into mid-2025.

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Other executives, including Chief Legal Officer Paul Grewal and Director Fred Wilson, have also detailed plans for selling portions of their shares, with timelines ranging from late 2024 to 2026. Although Coinbase shares have increased by 5.1% this year, they still lag behind the broader S&P 500 index by 20%. Haas highlighted that these planned sales represent only a small percentage of the insiders’ total holdings, underscoring the confidence that company leaders have in Coinbase’s long-term prospects.

Alexander Zdravkov